Home prices in the Tracy/Central Valley Area after the government’s giveaway
Friday, July 30, 2010
Following the expiration of the federal home buyers tax credit, sales of existing, single-family homes in California declined 4.2% during the month of June compared with the prior year, according to the California Association of Realtors. Meanwhile, the median price of existing homes in California rose 13.6% on a year-to-year basis to $311,950. The median price is the point at which half of the homes on the market sell for more and half for less.
Although the median home price in California rose in June on a year-to-year basis, in month-to-month comparisons the median price declined 3.8%, according to another C.A,R. report. However, California’s housing market continues to recover at a faster pace than the national housing market in general. Nationwide, home sales have declined 5% in June alone and the median price has risen only 1%, according to a N. A. R. report. (National Association of Realtors)
The Central Valley of California is expected to a little lower in the second half of the year due to the absence of the federal home buyers tax credit, but sales should remain above the long-run average and be significantly higher than the trough in 2007. It is important to remember prices are substantially below their peaks from just a few years ago and interest rates are historically low, making this a very affordable time for many first-time home buyers to purchase a home of their own.
Having said all that, the Tracy/Central Valley market continues to be very strong, as many first time home buyers feel they may never have another chance again like this where both prices and interest rates are both down at the same time. Who knows, by next year we may be saying, “Do you remember when…..”
